Fake Flare Network Site Drains $8.5M Worth of XRP From Investors in XRP Staking Scam

A website pretending to be Flare Network stole around 3.4 million XRP, worth $8.5 million, from unsuspecting investors. South Korean police said the scam targeted 71 victims by promising fixed monthly staking returns and guaranteed protection of their investments. 

🚨SEOUL POLICE BUST $19M XRP STAKING SCAM!

Three arrested over a fake $XRP staking platform that impersonated Flare Network and FXRP around their launch.

71 victims lost about 3.4 million $XRP.

Roughly 27.3 billion won ($19 million) reached the operators’ wallets.

A fourth… pic.twitter.com/AJ825BmoZj

— Crypto Banter (@crypto_banter) July 30, 2026

Authorities have also frozen millions of dollars in stolen crypto, but a large portion of the funds is still missing.

Fake Flare Network scam fooled dozens of XRP investors

According to the information shared by Seoul Metropolitan Police Agency’s Cyber Investigation Unit, the suspects created a fake website called Fxrpntwork.com between October 16 and October 23, 2025. 

The site copied the branding of the legitimate Flare Network and its FXRP ecosystem, which made it look like an official staking platform.

The bad actors promised investors that they would earn 1.5% to 1.8% in monthly staking returns. They also claimed that the users’ original investments would not be touched. This lured many investors into this site.

The group launched the fake website just after the FXRP token launch. Police say they also filled the internet with misleading information, including fake Naver blog posts, Tistory articles, Wikipedia pages, online news stories, and YouTube videos.

Some of the videos even featured paid actors pretending to be satisfied investors, which gave the platform “fake credibility.”

The scammers told victims to move their funds through overseas exchanges before depositing them into wallets controlled by the group. Investigators said this was done to avoid South Korea’s monitoring systems. After they had accumulated about 3.4 million XRP, the website went offline.

Police recover millions, but hunt continues

The investigation was launched after an overseas exchange noticed suspicious XRP transactions and tipped off South Korean authorities. Investigators were able to trace the movement of the assets using blockchain analysis, IP address tracking, website registration records, and conversation logs.

In three days, police froze around 17.3 billion won ( $12 million) worth of XRP and Tether held on some overseas exchanges. Authorities are currently working on the legal process to seize the assets and return them to victims.

But not all of the funds stolen have been recovered. Police said there is still $7 million that had been transferred out before the freeze.

Blockchain investigators tracked $18.8 million flowing through wallets connected to the operation. That figure is way higher than the $8.5 million that was confirmed stolen from the 71 victims. This led the police to believe there could be more victims who have not come forward.

Three arrested as police search for fourth suspect

The police have arrested three suspects linked to the crime. The two main suspects have been referred to prosecutors under South Korea’s Act on the Aggravated Punishment of Specific Economic Crimes. The other suspect appeared in promotional videos and has been charged with fraud.

Investigators said there is still a fourth suspect hiding overseas. Authorities have gotten an arrest warrant and requested an Interpol Red Notice to locate and arrest the person.

Police had carried out 54 search and seizure warrants during the investigation. The case comes after major crypto crime investigations in South Korea this year. 

In June, authorities charged 23 people for laundering $11.1 million in USDT connected to a Cambodia-based phishing operation. Officials said they will continue taking a “zero tolerance” stance to crypto fraud.

Source:: Fake Flare Network Site Drains $8.5M Worth of XRP From Investors in XRP Staking Scam